As investors welcome news regarding the U.S. opening its borders for vaccinated visitors and Congress approving a major infrastructure spending bill, five industrial stocks meeting Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s four-criterion investing approach as of Monday are Copart Inc. (CPRT, Financial), Canadian Pacific Railway Ltd. (CP, Financial), Griffon Corp. (GFF, Financial), Xingyi Glass Holdings Ltd. (HKSE:00868, Financial) and Kintetsu World Express Inc. (TSE:9375, Financial) according to the Buffett-Munger Screener, a Premium feature of GuruFocus.
Dow and S&P 500 hit records as U.S. opens borders and approves infrastructure spending bill
On Monday, the Dow Jones Industrial Average closed at 36,432.22, up 104.27 points from last Friday’s close of 36,327.95. The Dow hit a new intraday record of 36,565.73 earlier in the day.
Likewise, the Standard & Poor’s 500 index closed above 4,700 for the first time in history despite increasing just 4.17 points from the previous close of 4,697.53.
On Friday, the U.S. House of Representatives passed a $1 trillion infrastructure spending bill that includes funding for transportation, utility grids and broadband. The U.S. on Monday lifted its international travel ban, allowing vaccinated travelers to enter the U.S. with proof of vaccination and a negative Covid-19 test taken within three days of departure.
As such, investors may find opportunities in industrial stocks that meet Buffett and Munger’s four-criterion investing approach: understandable business, favorable growth prospects, shareholder-oriented management and attractive valuation. Key criteria include strong business predictability, high profit margins, low debt-to-asset growth rates and a low price-earnings-to-growth ratio.
Copart
Shares of Copart (CPRT, Financial) traded around $153.11 with a price-earnings-to-growth ratio of approximately 1.79.
GuruFocus ranks the Dallas-based vehicle auctioning company’s profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank and an operating margin that has increased approximately 5.2% per year on average over the past five years and outperforms more than 96% of global competitors.
Gurus with holdings in Copart include Pioneer Investments, Steven Cohen (Trades, Portfolio)’s Point72 Asset Management and David Rolfe (Trades, Portfolio)’s Wedgewood Partners.
Canadian Pacific
Shares of Canadian Pacific (CP, Financial) traded around $76.89 with a price-earnings-to-growth ratio of approximately 1.71.
GuruFocus ranks the Canadian transportation company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins and returns that outperform more than 92% of global competitors.
Griffon
Shares of Griffon (GFF, Financial) traded around $27.81 with a price-earnings-to-growth ratio of approximately 1.10.
GuruFocus ranks the New York-based garage door manufacturer’s profitability 7 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and a high Piotroski F-score of 8.
Xingyi Glass Holdings
Shares of Xingyi Glass Holdings (HKSE:00868, Financial) traded around 20.35 Hong Kong dollars ($2.61) with a price-earnings-to-growth ratio of 0.44.
GuruFocus ranks the Hong Kong-based industrial glass company’s profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank and an operating margin that has increased approximately 8.7% on average over the past five years and outperforms more than 96% of global competitors.
Kintetsu World Express
Shares of Kintetsu World Express (TSE:9375, Financial) traded around 2,716 yen ($23.99) with a price-earnings-to-growth ratio of 0.50.
GuruFocus ranks the Japanese freight logistics company’s profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and an operating margin that has increased approximately 9.20% per year on average over the past five years.
